Rada Ratifies Zelensky’s €90B EU Loan for Ukraine’s Defense and Budget Support
The Verkhovna Rada has ratified a bill submitted by President Zelensky approving an EU loan package of up to €90 billion ($104 billion) for Ukraine. The funding, planned for 2026–2027, will support both defense spending and state budget stability. The agreement includes concessional terms, with inte
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[UPDATED: May 28, 11:54 am
, Kyiv time. Updated with a report on the ratification of the €90 billion agreement by the Verkhovna Rada.
Updated with Zelensky’s reaction to the parliamentary vote.]
The Verkhovna Rada has approved President Volodymyr Zelensky’s bill ratifying a €90 billion ($104 billion) EU loan package, securing one of Ukraine’s largest wartime financing programs for defense and fiscal stability.
On Thursday morning, Zelensky has submitted to the Ukrainian parliament a bill on the ratification of an agreement with the European Union on a loan package for Ukraine. That was evidenced by data published on the parliament’s website.
The corresponding bill was fully adopted by 298 members of parliament.
The document concerns the ratification of the loan agreement and a memorandum of understanding between Ukraine and the EU on receiving macro-financial assistance.
The draft law defines the framework for attracting funds totaling up to €90 billion ($104 billion), including macro-financial assistance provided within the broader loan support program for Ukraine.
The conclusion and subsequent entry into force of the loan agreement and memorandum of understanding, following ratification, would allow Ukraine to attract up to €90 billion in financial resources from the EU in 2026-2027 to support the state budget and strengthen the country’s defense capabilities.
The agreement defines the total amount of assistance for 2026 as up to €45 billion ($52 billion), divided into two components:
the defense component – up to €28.3 billion ($32 billion) – intended for weapons purchases and strengthening Ukraine’s defense-industrial potential;
the budget component – €16.7 billion ($19 billion) – aimed at ensuring macro-financial stability and covering the state budget deficit.
The budget component will also be divided into two instruments: up to €8.35 billion ($9.5 billion) will be provided directly as macro-financial assistance, while another €8.35 billion ($9.5 billion) will be allocated through the Ukraine Facility mechanism.
Belarusian democratic leader Sviatlana Tsikhanouskaya met President Volodymyr Zelensky in Kyiv during her first working visit to Ukraine, marking a major step in formalizing ties between Kyiv and Belarusian democratic forces. The meeting focused on countering Russian threats, isolating Alexander Lukashenko’s regime, border security, Belarusian volunteers fighting for Ukraine, political prisoners and accountability for Minsk’s role in Russia’s war.
The memorandum of understanding specifies the allocation of macro-financial assistance within the budget component.
According to the document, payments will be made in three tranches: €3.2 billion ($3.6 billion), €3.7 billion ($4.2 billion), and €1.45 billion ($1.65 billion).
At the same time, each tranche comes with its own conditions for disbursement. The first requires, among other measures, the introduction of bills abolishing tax exemptions for international parcels and introducing taxation for digital platforms – legislation that currently lacks parliamentary support.
The second tranche requires the approval of those bills, while the third includes reforms to the preferential tax regime.
Zelensky has already reacted to the parliamentary decision, writing on social media:
“I am grateful to all parliamentarians who so promptly ratified the agreement with the European Union on support of €90 billion for Ukraine for two years. These funds will strengthen our resilience and help protect the lives of our people, restore what was destroyed after Russian strikes, and defend our independence.”
According to him, this is one of the most important votes and demonstrates the constructiveness of joint work and a willingness to listen to each other.
“Unity in Ukraine is what always works for Ukraine. I am also grateful to our European partners for their readiness to stand with Ukraine and effectively support our defense, our diplomacy, and our reconstruction,” Zelensky wrote.
He added that Ukraine “fully defends Europe,” and that full support for Ukraine will strengthen Europe as a whole.
The agreement was signed on May 27 in Brussels and Kyiv. The creditor is the EU, represented by the European Commission, while the National Bank acts on behalf of Ukraine as the borrowing agent.
The funds are allocated to address the negative consequences of the war and support the stability of the Ukrainian economy.
Although legally structured as a long-term concessional loan, for Ukraine’s state budget it effectively functions as a grant.
As RBC-Ukraine reports, Ukraine is receiving financing on exceptional terms:
All loan servicing costs (interest) will be fully covered by the EU budget due to the EU’s high credit rating.
Ukraine will repay the principal only if it receives reparations from Russia; therefore, the loan does not create an immediate debt burden on the state budget.
Also, on the Rada’s agenda for Thursday is a vote on amendments to the 2026 state budget. The changes provide an increase in defense spending – specifically financed through the EU loan package.
On Wednesday, lawmakers from the Holos faction, Yaroslav Zheleznyak, and from the ruling Servant of the People faction, Olha Vasilevska-Smahlyuk, announced that the Rada is expected to ratify the memorandum on the €90 billion ($102 billion) EU loan on Thursday, May 28.
Zheleznyak said that European Commission President Ursula von der Leyen has already announced the signing of the memorandum with Ukraine on this loan.
“So, the ratification of the €90 billion agreement is urgently postponed to May 28 for a vote in the Rada. It will appear on the website soon, and in the morning the committee will put it to a vote,” he wrote.
The decision was adopted via written procedure by the Council of the EU, following agreement among member states to amend the bloc’s long-term budget for 2021–27, according to local outlet European Pravda.
The move clears the way for Ukraine to receive the funds in 2026–27 as Kyiv continues to face significant wartime financing needs.
Hungary had previously blocked the €90 billion loan over the Druzhba pipeline, demanding that Kyiv restore Russian oil flows, while Slovakia said it would lift its veto on the EU’s 20th sanctions package if the pipeline was restarted. The Druzhba pipeline resumed operations on April 22.
EU Commissioner for Economy and Productivity Valdis Dombrovskis said the bloc expected to begin disbursing funds by late May or early June.
The funding is set to cover around two-thirds of Ukraine’s external financing needs for 2026–27, with the remainder expected from G7 partners, the International Monetary Fund (IMF), and bilateral contributions.
